Answer:
Red Rose
Using this information, the break-even point in dollars per month is $ 16092.
Explanation:
a) Data and Calculations:
Beer Sales Meals Desserts/Wine Lunches
Sales unit 30,000 10,000 10,000 20,000
Selling price per unit $1.50 $10.00 $2.50 $6.25
Cost price per unit $0.75 $5.00 $1.00 $3.25
Contribution per unit $0.75 $5.00 $1.50 $3.00
Total Sales revenue 45,000 100,000 25,000 125,000 $295,000
Total variable cost 22,500 50,000 10,000 65,000 $147,500;
per month = $12,292 ($147,500/12)
Total contribution = $147,500
Fixed cost = $3,800 ($1,800 + $2,000) per month
Total fixed cost per year = $45,600 ($3,800 * 12)
Break-even in sales dollars per month = Total costs = Fixed cost + Variable cost per month
= $3,800 + $12,292 ($147,500/12)
= $16,092
